In Spain, when we talk about Señal in the real estate context, we are referring to a deposit or earnest money paid when reserving a property for sale.
What is the importance of the Señal?
- This is a financial commitment between the buyer and the seller.
- It reserves the property for the buyer and removes it from the market.
- It is the first contractual commitment between the two parties.
In Spain, it is customary for a purchase offer to be accompanied by a bank transfer corresponding to the Señal. If the offer is accepted, this amount is then deducted from the total Arras, formalizing the commitment between the two parties.
What are the characteristics of the Señal?
- Its amount is not precisely defined, but it is generally between 3% and 10% of the property price.
- The Señal can be paid in cash, by check, or by bank transfer.
- It is paid upon signing the reservation contract, called the Contrato de arras.
What are the risks incurred by the parties in the event of withdrawal?
- In the event of withdrawal, the buyer risks losing the amount of the Señal.
- If the seller withdraws, they must generally reimburse double the amount paid.
What are the steps for settling the Señal properly?
- The negotiation of the property price and the conditions of sale must have taken place and be clear.
- A reservation contract must be drawn up (Contrato de arras).
- The Señal payment is made.
- A detailed receipt is given to the buyer by the seller.
Advice from Terreta Spain experts
- Be sure of yourself before committing.
- Check the legal status of the property by obtaining the Nota Simple.
- Negotiate the amount of the Señal.
- Make sure the contract contains a clause on the conditions of reimbursement.
- Hire a lawyer to verify the contract. Contact our experts for recommendations of qualified professionals.
FAQ: the Señal in Spanish real estate
What is the Señal?
The Señal is a deposit or down payment made when reserving a property in Spain.
What is the amount of the Señal?
The amount of the Señal is generally between 3% and 10% of the property price.
When is the Señal paid?
It is paid upon signing the reservation contract, called Contrato de arras.
Can a buyer lose the amount of the Señal paid?
Yes, if the buyer withdraws, they may lose the Señal if they do not comply with the terms of the contract.
Can a seller be required to reimburse the Señal?
Yes, if the seller withdraws, they must reimburse double the amount of the Señal.
